The LMN Partnership has the following assets and liabilities before any reduction for year-end principal payments...

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Accounting

The LMN Partnership has the following assets and liabilitiesbefore any reduction for year-end principal payments on theliabilities. Assume the book basis and tax basis are the sameamount. Assets Basis=$300,000 Value= $400,000. Nonrecourse debt = Basis $500,000 and Value = $500,000. If thepartners have a deficit in their capital accounts of ($100,000),what is the amount of minimum gain chargeback if partnership lossfor the year is ($20,000) and the liabilities are reduced by$250,000? Please explain answer. A. $0 B. $20,000 C.$50,000 D. $100,000. Please showexplanation and math.

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DEFICIT CAPITAL ACCOUNTS IN PARTNERSHIP In partnership the capital of partners is limited To invest money to the partnership firm there will be risk on invested amount capital in deficit See Answer

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